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Often it is better to be the big fish in a small pond
Monopolizing small ponds is highly profitable
Let me show you why:
Monopolizing small ponds is highly profitable
Let me show you why:
Let's say you're a baker and you want to start a bakery
There are two towns you can start your bakery in. Neither of them have a bakery right now
One town is 3000 people, the other is 30000
Which one is better?
You'd think the bigger one right?
But you'd be wrong
There are two towns you can start your bakery in. Neither of them have a bakery right now
One town is 3000 people, the other is 30000
Which one is better?
You'd think the bigger one right?
But you'd be wrong
See if you go for the smaller 3000 people town, you saturate the market with your one bakery
You'll never have to worry about any competitors outcompeting you because it's just not profitable to open a second bakery in such a small town
Profitable + secure business
You'll never have to worry about any competitors outcompeting you because it's just not profitable to open a second bakery in such a small town
Profitable + secure business
The 30.000 people town might sound better, but there is no way you can serve 30.000 people with one bakery
So soon a second one will spring up, and a 3rd etc
Eventually you have 10 bakers in that town and you'll have the same amount of customers as you would in the small town
So soon a second one will spring up, and a 3rd etc
Eventually you have 10 bakers in that town and you'll have the same amount of customers as you would in the small town
Here's the kicker though
Opening a second bakery in a 3000 people town means only 1500 potential customers
Opening an 11th bakery in a 30.000 people town means around 2800 potential customers
So a 30.000 people town can support more than 10 bakeries. Probably even 12-15 bakers
Opening a second bakery in a 3000 people town means only 1500 potential customers
Opening an 11th bakery in a 30.000 people town means around 2800 potential customers
So a 30.000 people town can support more than 10 bakeries. Probably even 12-15 bakers
The logical conclusion is that it's better to be the big baker in a small town, than a small baker in a big town
Small niches with almost no competition are often much more profitable than big generic markets where you'll have tons of competitors
Small niches with almost no competition are often much more profitable than big generic markets where you'll have tons of competitors
This isn't just true for business, it's also true for dating
It's much better to be the most eligible bachelor in a small town
Than to be somewhere in the middle of the pack in a big city
(Unless you just want to skank around & not date seriously)
It's much better to be the most eligible bachelor in a small town
Than to be somewhere in the middle of the pack in a big city
(Unless you just want to skank around & not date seriously)
